Does Better Blend require franchisees to obtain Workers Compensation coverage?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
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- B. Insurance. You must obtain insurance as described in the Franchise Agreement and in our Brand Standards Manual, which includes (i) "Special" causes of loss coverage forms, including fire and extended coverage, crime, vandalism, and malicious mischief, on all property of the Business, for full repair and replacement value (subject to a reasonable deductible); (ii) Business Interruption Insurance covering at least 12 months of income; (iii) Commercial General Liability insurance, including products liability coverage, and broad form commercial liability coverage, written on an "occurrence" policy form in an amount of not less than $1,000,000 single limit per occurrence and $2,000,000 aggregate limit, (iv) Business Automobile Liability insurance including owned, leased, non-owned and hired automobiles coverage in an amount of not less than $1,000,000, and (v) Workers Compensation coverage as required by state law. Your policies (other than Workers Compensation) must list us and our affiliates as an additional insured, must include a waiver of subrogation in favor of us and our affiliates, must be primary and non-contributing with any insurance carried by us or our affiliates, and must stipulate that we receive 30 days' prior written n
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 17–20)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, franchisees are required to obtain Workers Compensation coverage as mandated by state law. This requirement is part of the broader insurance obligations outlined in the Franchise Agreement and Brand Standards Manual. In addition to Workers Compensation, franchisees must also secure other types of insurance, including "Special" causes of loss coverage, Business Interruption Insurance, Commercial General Liability insurance ($1,000,000 single limit per occurrence and $2,000,000 aggregate limit), and Business Automobile Liability insurance ($1,000,000).
Better Blend franchisees need to ensure their Workers Compensation coverage complies with the specific requirements of their state. The other insurance policies, excluding Workers Compensation, must list Better Blend and its affiliates as additional insured parties and include a waiver of subrogation. These policies must also be primary and non-contributing with any insurance carried by Better Blend or its affiliates. Furthermore, Better Blend requires a 30-day prior written notice of cancellation for these policies.
The obligation to maintain Workers Compensation coverage is a standard practice in franchising, particularly in the food and beverage industry, to protect employees in case of work-related injuries or illnesses. Franchisees should factor in the cost of these insurance policies, including Workers Compensation, when assessing the overall financial investment required to start and operate a Better Blend franchise. Franchisees should consult with an insurance professional to determine the specific Workers Compensation requirements in their state and to obtain appropriate coverage.